Yes you can to an internal transfer after your first year. They will look at your uni marks only (and your personal statement a little, depends on your marks) and decide if you can transfer. The higher the UAI, the harder it will be to transfer into though. If you can get a Distinction average then that would be great, but a high Credit average is good as well (especially in a course as hard as Engineering).
Are you trying to get into BSc NanoTech or BSc NanoTech Innovation? The innovation course has a much higher 2003 UAI than the normal one. I'm not sure if they accept internal transfers into innovation courses (since they prefer you to start from first year, and coz some people get the $2000 if its still around).